March 2013
INTERNATIONAL SALVAGE UNION
Record numbers at ISU Associate Members' Day A record 150 delegates from the shipping and salvage industry and their associated professions attended the ISU’s annual Associate Members’ Day in central London in late March. President of the ISU, Andreas Tsavliris, opened proceedings by welcoming guests and introducing the theme for the day: major wreck removal. He was followed by keynote speaker, Quentin Soanes, Chairman of the Baltic Exchange, who updated delegates on the outlook for the economics of the shipping industry noting chiefly that the prospects for recovery in cargo were good but that overcapacity caused by vessels ordered in more prosperous times remained a problem. Mr Soanes also suggested that the industry should expect the size of ships now to plateau for the next few years. Michael Kelleher, representing the International Group of P&I Clubs, outlined the findings of its analysis of the rising cost of wreck removal. The role of the authorities; the location of a wreck; the way its bunker fuel is treated and the contractual arrangements are all important drivers of costs, he said. He also praised the innovation and capability of the contractors – largely members of the ISU – and suggested the Clubs could “open the door” to discussions aimed at helping contractors with the cost of bidding for substantial wreck removal projects. Toby Stone, General Manager of the Marine Environment Division of the Australian Maritime Safety Authority,
ISU President, Andreas Tsavliris (above). Chairman, the Baltic Exchange, Quentin Soanes (top right). Toby Stone, Australian Maritime Safety Authority
outlined his country’s salvage and wreck arrangements and gave a perspective on the pressures faced by the authorities in handling casualty and wreck removal cases. The programme also saw ISU members describe some of their operations as well as new technological developments in the industry and the commercial dimension of wreck removal. Continuing concern about the issue of places of refuge was also addressed. A new approach to the conference, using a professional “facilitator” to compere the
proceedings, ensured lively discussion after each presentation and the day was rounded off with a panel session addressing some of the issues arising. Summing up, Andreas Tsavliris said: “Removing any wreck is a significant undertaking but removing the largest wrecks from difficult sites is a huge and expensive undertaking and ISU shares others’ concerns with rising costs. ISU is determined that its Associate members should benefit from their association with us and this conference gives an excellent opportunity to engage with them and update them on key salvage issues.”
Biennial Special Casualty Representatives' seminar The ISU and the International Group of P&I Clubs have jointly hosted the biennial meeting of the cadre of Special Casualty Representatives. The seminar took place aboard HQS Wellington, the livery hall of the Honourable Company of Master Mariners. The meeting was open to ISU members and, for the first time, Associate members as well as the SCRs, property and liability insurers.
Commenting on the meeting, Captain Keith Hart, the SCRs’ representative on the SCOPIC committee said: “It was a well-supported event with good participation and attendance from the International Group and the SCRs. It was an excellent opportunity for SCRs to interact with those who appoint them.” The seminar heard a presentation from the Australian Maritime Safety Authority on salvage arrangements in that country and Nick White of London 1
Offshore Consultants, but speaking in a personal capacity, explored different interpretations of the role of the SCR and rhetorically asked whether “SCOPIC was going off the rails?” The presentations were followed by an open forum and panel discussion. Attendees were also briefed on the recent SCOPIC committee meeting, changes to the SCR panel and suggestions to improve the applications of aspirant SCRs.
ISU NEWS Annual Dinner The ISU President, Andreas Tsavliris, hosted the ISU Annual Dinner in the fine surroundings of the Royal Thames Yacht Club in London’s Knightsbridge. Guests included speakers from the Associate Members’ Day and leading figures from the shipping industry, including the Chairman of the Baltic Exchange, Quentin Soanes.
Above, ISU President, Andreas Tsavliris, addresses the ISU Annual Dinner, with, to his right, Jeremy Russell QC and to his left Quentin Soanes, Chairman of the Baltic Exchange and Mark Patterson from Lloyds. Top, from left, Joop Timmermans, Ben Browne and John Guy.
Annual Review
Lloyd’s Salvage Group
ISU Website
The Executive Committee has approved publication of the first ISU Annual Review. The document will be a formal report of the activities and governance of the ISU. It is to be distinct from Salvage World which will continue as a quarterly newsletter. The Annual Review will be distributed electronically and uploaded to the ISU website. A small number of “hard copies” will be printed to be given to key shipping industry figures.
A sub-group of the Lloyd’s Salvage Group has reviewed the Lloyd’s Standard Salvage and Arbitration Clauses (LSSA) and the matter of Arbitrators’ booking fees. The changes improve the way in which salvors give notice to parties and enable account to be taken of the majority view of property interests and so bind unrepresented interests to decisions.
The new ISU website has been launched with a new “look and feel” and a more user-friendly content management system. It is hoped to develop the website further to make it the most valuable resource for those interested in marine salvage.
Places of Refuge
AGM
ISU has re-stated its concern about lack of international progress on the important issue of Places of Refuge. ISU broadly supports the position of the International Chamber of Shipping and will be developing its own position paper on the topic to help bring its influence to bear on the authorities, including IMO.
Former ISU President, Okke Grapow, has co-authored a book, “ATug at my Heart”, about the South African super tugs WOLRAAD WOLTEMADE and JOHN ROSS (which is now SMIT AMANDLA).
The ISU Annual General Meeting will take place in Hong Kong on 24 October using a shorter format with the full business of the Meeting conducted in one day. The Executive Committee will meet before the AGM and there will be a social programme following the AGM. The intention is that the format will suit members who do not wish to commit two working days to the AGM while still allowing proper business and social opportunities. The meeting will be held in the Intercontinental Hotel, Kowloon. A new system will enable members to book their hotel rooms directly which will enable more flexibility. Details will be circulated by the General Manager in June.
London International Shipping Week ISU is supporting the London International Shipping Week Conference to be held at the Willis Building in the City of London on September 12. Speakers so far confirmed include: The Lord Mayor of the City of London, Roger Gifford; Koji Sekimizu, Secretary General of the IMO; Masamichi Marooka, Chairman of the ICS and Admiral Sir George Zambellas KCB, DSC, the UK’s First Sea Lord. 2
New book
Copies may be purchased by contacting Okke Grapow at: gundog@icon.co.za A Tug at my Heart Stories of South Africa’s Super Tugs ‘Wolraad Woltemade’ ‘John Ross’ (Smit Amandla)
Captain Okkert-Ernst Grapow and Tony Westby-Nunn
The title of the book reflects the feelings generated by the mere mention of the names of
International Salvage Union Annual Pollution Survey - 2012 Results ISU has published the results of its annual Pollution Prevention Survey for 2012. The quantity of pollutants salved overall was significantly up on the 2011 numbers. The increase is explained by the inclusion of a small number of substantial coal cargoes this year. There was a decrease in the number of services performed by ISU members compared with the previous year. The total of all pollutants salved in 2011 was 810,068 tonnes compared with 496,331 tonnes in 2011. It is a rise of 63%. In 2012 the major change was a significant increase in the quantity of “other pollutants” salved – up 691% from 63,338 tonnes in 2011 to 501,348 tonnes this time. However, the 2011 figure was historically low and the 2012 includes some large, bulk cargoes, notably of coal. The quantity of oil cargoes salved went down by 59% from 258,647 tonnes in 2011 to 104,665 tonnes in 2012. This category is subject to dramatic change due to the potentially large volumes of oil cargo carried by a single vessel. The 2012 number represents, for example, only one major cargo.
2011
2012
% variation
Number of services
221
188
-15%
Oil cargo salved
258,647
104,665
-59%
Bunker fuel salved
123,521
105,058
-14%
Chemicals salved
50,825
99,015
+94%
Other pollutants
63,338
501,348
+691%
Totals
496,331
810,068
+63%
All figures in tonnes
Commenting on the results, ISU President, Andreas Tsavliris, said: “This annual survey shows that our members have salved a huge quantity of potentially polluting products – more than 800,000 tonnes. This year we have made sure that all potentially polluting cargo is recorded – including bulk coal and ore. Not all of the potential pollutants which were salved were at imminent risk of spilling into the sea but there can be no doubt that our services have been of great benefit in helping to protect the marine environment from potential damage. Some context is given by the fact that in the United States’ worst environmental disaster, 700,000
tonnes of oil was released into the Gulf of Mexico in 2010 from the Macondo Well. “The survey results also show how variable our industry is. A small number of large cargoes can cause significant differences year on year. But it only takes one major casualty to cause an environmental catastrophe and ISU members can be very proud of their work.” The ISU’s Pollution Prevention Survey began in 1994. In the 18 years to end2012, ISU salvors have salved 17,857,100 tonnes of potential pollutants, an average of just under one million tonnes per year.
Pollution prevention results - 2012
There were 188 services carried out by ISU members. The Lloyd’s Open Form salvage contract continued to be the most widely used contract with 52 services (55 in 2011). 32 services were carried out under towage contracts; 31 services were carried out under the Japanese form. Wreck contracts accounted for 42 of the services and other types of contract were used in 36 services.
Oil cargo 104,665 Bunkers 105,058 Chemicals 99,015 Other pollutants 501,348
Total: 810,086 tonnes 188 salvage operations
Pollution prevention trends (million tonnes)
Exxon Valdez spill: 37,000 tonnes (1989)
2012 total pollutants salved: 810,086 tonnes Tanker graphic not to exact scale.
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Members’ News Fairmount Marine operations
Resolve Marine
Tsavliris
The powerful tug FAIRMOUNT ALPINE has delivered the EMMA MAERSK, one of the largest containerships, to Fincantieri’s repair yard in Palermo, Sicily. The tow came after the 398 metre long vessel experienced engine room flooding off the northern entrance to the Suez Canal. FAIRMOUNT ALPINE was in the eastern Mediterranean area and was promptly mobilized to Port Said, where EMMA MAERSK had discharged her cargo at the Suez Channel Container Terminal.
Resolve Salvage and Fire has signed an agreement with the Fire Department of New York (FDNY) allowing the resources of the FDNY to be included in Reslove’s network of first responders that are available to vessel owners and operators, under the OPA90 Salvage and Marine Firefighting (SMFF) requirements.
The GLOBAL SUCCESS I, a 189 bollard pull ocean going tug, (formerly the SINGAPORE) has joined the Tsavliris Salvage Group tug fleet. The 13,500 bhp salvage tug was taken over from Svitzer Ocean Towage at Galveston Texas, USA, by the new owners GMS (Global Marketing Systems). Tsavliris will undertake full management of the vessel. She will be deployed in ocean salvage and towage. She is a traditional, fullyfledged salvage tug with anchor handling capabilities.
The convoy left Port Said on Sunday February 17 for the 1,276 miles voyage to Palermo, where it arrived on Monday February 25. Elsewhere, Fairmount Marine has been busy with its tugs FAIRMOUNT SUMMIT and ALPINE delivering the new-build NOBLE TAMAR jacket to the Tamar gas field in the Eastern Mediterranean. Both tugs towed the 260 metre barge on which the 18,500 tonne jacket was loaded from the US to the field South-East of Cyprus. The tow took 54 days at an average speed of 6.9 knots. Upon arrival the Fairmount tugs assisted in the launching and installation operations. Fairmount’s SHERPA and EXPEDITION towed the drilling rig NOBLE MAX SMITH from the Gulf to Brazil (see below) where she is contracted to Shell for a drilling campaign for a three year period. On arrival, FAIRMOUNT EXPEDITION assisted with mooring the rig in position.
FAIRMOUNT GLACIER has delivered the rig LA MURALLA IV to the Bay of Campeche, Mexico. It is a new semi-submersible drilling rig for ultra deepwater operations, owned by Mexican Grupo R. The rig, built by Deawoo Shipbuilding & Marine Engineering in South Korea, is designed to drill up to depths of 10,000 metres. It has a length of 118 metres and a width of 96 metres. The rig was towed from South Korea, via Sunda Strait and the Cape of Good Hope. During the 16,200 mile voyage, bunker stops were made in Singapore, Mauritius, Walvis Bay and Curacao.
President of Resolve Marine Group, Inc., Joe Farell said: “FDNY has an excellent marine division that already responds first to marine incidents. This agreement simply formalizes FDNY’s role in the Vessel Response Plan (VRP), as a fellow marine firefighting responder, under the OPA90 SMFF regulations. That said, Resolve is very glad to have them onboard.” The OPA90 SMFF requirements specifically mandate the written consent of resource providers to be listed in the Vessel Response Plan. The USCG has interpreted this also to include public marine firefighting resources such as FDNY. The way the regulations are currently written, municipal and public firefighters can only be listed as responders to a marine event if they sign a consent agreement to be listed in the Vessel Response Plan. Even if local plans – like the USCG’s Area Contingency Plan – include an area’s fire departments, the USCG insists on the fire services’ written agreements in order to be listed as responders in the VRP. “Having FDNY sign the consent agreement will go a long way toward encouraging other fire departments around the nation to sign, and that’s a very good thing,” said Jeff Johnson, Resolve’s Training and Response Manager Separately, Resolve’s Maritime Academy has joined the Transas Global Electronic Chart Display Information System (ECDIS) Training Network, known as Get-Net. The Academy has expanded its training facilities in Fort Lauderdale, Florida, adding a second ECDIS classroom with Transas simulation software and Transas ECDIS to meet the high demand for Generic and TypeSpecific ECDIS training. Resolve Maritime Academy, LLC is a wholly owned subsidiary of Resolve Marine Group, Inc. It provides simulationbased training for the maritime industry using six bridge simulators, including one full mission bridge with a connected bridge wing, four mini bridges and two ECDIS classrooms.
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Elsewhere, Andreas Tsavliris, President of the International Salvage Union gave speeches at two events in March. Firstly, he spoke at the International Maritime Industries Forum on “The Evolution of the LOF & Challenges within the Salvage Industry”. The event was well-attended and by senior shipping industry figures. The speech tackled the difficulties which salvors currently face including the salvage of mega-ships, criminalisation, ETVs, environmental salvage, places of refuge and commercial pressures. It was followed by a wide-ranging discussion. Secondly, Mr Tsavliris gave his annual lecture at the City University to over 100 students of shipping who are taking their Masters Degrees. The presentation on “Shipping Trade & Finance,” drew on his 35 years experience in the industry. It covered ordering new buildings, buying and selling second hand vessels, chartering, insurance, banking, financing and currencies. He also emphasised the importance and necessity of the salvage industry globally. Mr Tsavliris said it is part of his programme of engagement of stakeholders on key issues: “I attend many meetings and have given a number of presentations in London in order to enhance the status of the ISU and to ensure the salvage industry is properly valued.”
Andreas Tsavliris (left) and Jim Davis, Chairman, IMIIF
Gigilinis' English Channel operation
On Christmas day 2012, Gigilinis Salvage & Towage; Mammoet Salvage and Iskes Towage & Salvage cooperated to provide assistance to the tank barge SHANDY which was drifting in the English Channel, following the parting of its towing wire while being towed to West Africa. Gigilinis’ salvage tug HELLAS sailed immediately and arrived at the casualty
on 26 December 2013 in severe weather conditions. The relatively simple operation of approaching the casualty to pick up the emergency line, was challenging given the Force 8-9 wind and 4-5 metre waves. Demonstrating great skill and seamanship the Master and crew of the HELLAS recovered the emergency line of the SHANDY and took control of the casualty on the morning of 27 December 2012.
Mammoet refloats sunken tug in Mexico The city of Coatzacoalcos in the state of Veracruz, Mexico, is central to the growth of the Mexican petrochemical Industry and, as part of wide ranging infrastructure developments, the authorities are installing the first submerged tunnel in Mexico and Latin America. During the operation to position the second out of five sections of the tunnel, a tug capsized. Mammoet Salvage was awarded the salvage contract to remove the tug from the fairway. The salvage plan was based on using a crane barge with spuds and a deck barge outfitted with a winch system. The barges were installed with two hydraulic chain puller arrangements producing a combined lifting power of 1200 tonnes. The salvage plan was divided in five phases: positioning the barges; lifting and transporting the casualty to an approved, sheltered location; lowering the wreck to the bottom and re-connecting the lifting tackle; parbuckling and refloating. The job was successfully completed. 5
Towing the casualty under the prevailing weather conditions was difficult but with constant adjustment to the speed and course of the convoy the casualty was towed to safety at Portland, UK. She was delivered to her owners shortly afterwards, following a quick, negotiated settlement. Gigilinis said that the operation, although brief, tested both the tug and her crew and was a great success.
Associates’ News New Associate Members ISU welcomes the following as Associate Members: Altimar Shipping Limited Tower Bridge House St Katherine’s Way London E1W 1DD, UK Tel: +44 20 7586 6111 Email: union@altimar.com Principal Contact: Yves Leon. CSA Ocean Sciences Inc. 6502 SW Kansas Avenue Stuart Florida 34997, USA Tel:+1 772 219 3000 Fax:+1 772 219 3010 Email: rmulcahy@conshelf.com Web: www.csaocean.com Eagle Lyon Pope Limited Saddlers House 44 Gutter Lane Cheapside London, EC2V 6BR, UK Tel: +44 20 3465 2550 Fax: +44 20 3465 2501 Email: tim.lewis@elpmarine.com Web: www.elpmarine.com Principal Contacts General Manager: Tim Lewis Eekels Pompen Koopliedenweg 25 2991 LN Barendrecht THE NETHERLANDS PO Box 299 2990 AG Barendrecht THE NETHERLANDS Tel: +31 180 696969 Email: e.leenart@eekels.nl Web: www.eekels.nl Principal Contacts CEO: Erik Leenart MSc LLM Thalund Shipping Klosterplads 9, DK-5700 Svendborg, Denmark Tel: +45 62 800 123 Fax: +45 62 800 321 Email: mail@otshipping.dk Web: www.otshipping.dk
Van Heck Group Ambachtsstraat 2 8931 VK Noordwolde THE NETHERLANDS Tel: +31 561 43 1739 Fax: +31 561 43 1766 Email: info@vanheckgroup.com Web: www.vanheckgroup.com Principal Contacts Managing Director: JGM Van Heck TugAdvise Mike Lacey, who stood down as Secretary General of ISU at the end of 2012 after a handover to Mark Hoddinott, has joined the Legal Team at TugAdvise, the specialist OSV, towage, salvage and wreck removal arm of the law firm Tatham Macinnes. Mike, a holder of a British Master Mariner’s Certificate, was for 10 years Managing Director of United Towing Ltd, and also worked for many years as a Marine Manager at London law firms. He now returns to legal practice and brings his formidable experience to the team at TugAdvise which is based at Holland House in the City of London and can be contacted at: mike.lacey@tugadvise.com Redwise During the first three months of 2013, some 13 vessels - tugs, barges, an OSV, a landing craft and three dredgers - were delivered to their new destinations under the management of Redwise Maritime Services BV. The firm delivered 54 vessels in 2012. The movements involved the delivery of a wide range of newly built vessels - 30 in total - that were making their maiden voyage from the yard to their new destination. The remaining 24 vessels were movements of existing tonnage. The ABR Company The 23rd ITS Convention and Exhibition will take place 16 - 20 June 2014 in the CCH Congress Centrum, Hamburg, Germany and the organiser, The ABR Company, is calling for papers. The event is the largest gathering of tug, towage, salvage and OSV experts, and many ideas for papers have already been received. Anyone who wishes to have their concept for a paper considered 6
should submit a 100-150 word synopsis by 31 May 2013. No late submissions can be accepted. The organisers say they receive considerably more papers than there is time to include, so an early indication of interest is essential. The steering committee will meet in August/ September this year to select papers for the programme. The ABR Company would also like to hear from anyone intending to attend the event as a delegate, regarding particular topics they would like to hear discussed. The ITS Convention has grown in size year-on-year, both in the number of delegates attending and the number of exhibitors participating. It typically attracts the most senior players in the salvage business from all over the world, affording them an opportunity to meet, learn and do business. For ITS paper synopsis submissions and ideas, email: val@ tugandosv.com To register as a delegate for the event, go to www.tugandosv.com. For further information, please call +44 (0)1225 868821. BIMCO BIMCO has announced that its new Secretary General/Chief Executive Officer will be Angus R Frew, currently Chief Executive of the UK Chamber of Shipping. He will succeed Torben Skaanild on his retirement later this year. It is expected that Mr Frew, who will be relocating to Denmark, will take up his appointment on 01 October 2013. Mr Skaanild will continue to support the new Secretary General for the following six months. BIMCO also announced the appointment of Michael Lund, BIMCO’s Chief Shipping Policy and Economics Officer, to Deputy Secretary General, an appointment that reflects the importance of this particular area to BIMCO and to the shipping industry in general. American Salvage Association The American Salvage Association shares ISU’s concern with the issue of unfair criminalisation of seafarers and the Winter 2013 edition of its newsletter, 'Soundings', contains an update on its Responder Immunity Innitiative in an article available at www.americansalvage.org
Swire’s fleet additions straight into action The two Windfarm Installation Vessels, PACIFIC ORCA and PACIFIC OSPREY, are the latest additions to the Swire Pacific Offshore fleet, the vessels will be operated by Swire Blue Ocean which is headquartered in Denmark and is a sister company to Swire Salvage Pte Ltd. PACIFIC ORCA commenced operations during January this year and is currently assisting with the decommissioning and removal of the topsides and jacket of the H7 platform, which is situated in a water depth of 40 meters and located in the German sector of the North Sea. PACIFIC OSPREY has recently arrived in Demark and will commence operations during April this year. The topsides of H7 weigh 5,700 tons while the jacket weighs 2,600 tons. PACIFIC ORCA’S charterers, will carry out the dismantling of the structure by removing medium sized sections from the platform using the vessel's main crane which is rated up to 1,200 tons, further processing will be carried out on board making use of the vessel's large deck area of 4,300 m2 which has a deck strength of 15 tonnes/square metre. The vessel’s accommodation, comprising of 111 single berth cabins, is being used to house the personnel required for this operation.
difficulties presented by lightering and cargo removal from large casualties.
The DP2 vessel’s Main specifications are as follows:
Swire says the vessels brings new capability into the market and will also provide salvors with an excellent working platform as well as an alternative solution for dealing safely and effectively with the
The jack up capabilities of the vessel allow for continuous operations in most weather conditions while the large storage capacities on board allow for both bunkers and cargo removal.
Length over all 160.90 m; breadth, moulded 49.00 m; draught, design 5.50 m; deadweight at 5.5 m draught approx. 8,400 tonnes; speed, 90% MCR, 15% S.M. approx. 13.0 kts.
Svitzer groundings Svitzer Salvage was appointed to refloat two general cargo ships grounded near Valencia. Several small dredging vessels were sourced locally and used to dredge a trench towards open sea. With bathymetrical survey equipment the progress of the dredging was constantly monitored. During periods of increasingly poor weather, tugs were used to prevent both ships from further damage and from moving higher up the beach. After days of round-the-clock dredging, both ships were successfully refloated and were towed to the Port of Valencia for further inspection.
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International Monitor Flag State Performance Table The International Chamber of Shipping (ICS) has launched its latest “Shipping Industry Flag State Performance Table”. ICS Director of External Relations, Simon Bennett said: “Our table is intended to encourage shipowners to maintain a dialogue with their flag administrations to effect any improvements that might be necessary in the interests of safety, the environment and decent working conditions.” This year’s table includes some new flag states such as Moldova and Sierra Leone which seem to be increasingly popular with some shipowners. They join flags such as Bolivia, Cambodia and Mongolia which, according to ICS, the table suggests have “patchy” performance. ICS emphasises that the table includes what should be regarded only as potentially positive indicators. There may be good reason why a flag is lacking one or two of these indicators, especially if it has had too few port calls to gain a place on certain port state control ‘white lists’ or has not yet ratified recently adopted international Conventions. Mr Bennett remarked: “The absence of a couple of positive indicators is probably not very important. But if a flag is lacking a large number of positive indicators then shipowners may want to ask serious questions.” ICS says that in today’s global industry, distinctions between so-called “traditional” flags and open registers are increasingly meaningless and actually unhelpful. The ICS table shows that many open registers like Liberia and the Bahamas are amongst the very top performers alongside several European registers, or flags such as Japan, Hong Kong and Singapore, that might be expected to perform well. The ICS Table uses information derived from the public domain as at June 2012 and may be downloaded from www.icsshipping.org Suez Canal Toll increases have been announced by the Suez Canal Authority (SCA), to be implemented on 1 May 2013. For all but the smallest ships, the Suez Canal toll increases range from about 3% to 5% according to tonnage and ship type. It follows across-the-board increases of 3% which were implemented in March last year. Shipowners have protested, noting that
the increases come at an unwelcome time with shipping continuing to experience severe economic difficulties. Owners now consider the Cape route as an increasingly serious alternative, particularly with slow steaming reducing fuel consumption. The threat of piracy in the southern approaches to the Suez Canal is also a factor in deterring use of the Canal. Germany The shipping industry’s continuing economic difficulties represent a significant risk to the German banking industry, and, despite low interest rates, banks must focus on making sure loans to shipping companies are solid, Andreas Dombret, an executive board member at Deutsche Bundesbank said in a recent speech. Low freight rates and overcapacity in the shipping market has pushed many shipping funds into negative territory, and some have filed for insolvency, he said, hurting the portfolios of banks involved in shipping finance. Herr Dombret said loans issued by major credit providers in the sector total just over €100 billion (US$132 billion). "The Bundesbank has been assessing and evaluating the crisis from a broader perspective with a keen eye on the stability of the entire financial system," he said. "Up until now, robust economic activity has helped the German banking system to cope with the pressures from problem business areas such as the financing of shipping. "It would be wrong to yield now to the temptation presented by the current lowinterest rate environment to postpone cleaning up the balance sheets." Herr Dombret said the banking industry must consider risks and returns and make sure shipping finance is transparent for capital providers and other parties, something that could potentially encourage new financing sources from outside conventional bank lending. Italy International classification society RINA Group has grouped all its experts on cruise vessels under a new Cruise Ships Centre of Excellence. It says the aim is to deliver improved service to operators, designers and builders of cruise vessels, and to encourage innovation. 8
Paolo Moretti, General Manager, Business Line Marine, RINA Group, said: “We have a lot of expertise around the group which can benefit cruise ship owners. Our recent internal reorganisation has given us the chance to harness that expertise more effectively. We have created a Cruise Ship Excellence Centre which brings together a group of leading experts in passenger ship safety, environmental issues and operational aspects.” The Cruise Ship Centre of Excellence will provide a one-stop point of contact for the cruise industry to deliver assistance with classification and design review, environmental services, risk assessment, trouble-shooting and management and software tools. UK ISU Associate Member, Moore Stephens, says many overseas companies, including some connected to shipping interests, will be among those affected by draft legislation from the UK government proposing changes to the taxation of UK residential property valued at £2m or more. Among other things, companies resident outside the UK will, for the first time, be liable to capital gains tax (CGT) on such property, with effect from 6 April 2013. The measures in the draft legislation include CGT at a fixed rate of 28 per cent on disposals of UK property owned by so-called ‘non-natural persons’ (NNPs), including those resident overseas, and an annual residential property tax (ARPT) on such properties where they are held by NNPs. Various entities are classed as NNPs, principally companies, but the definition does not include trusts. This means that a property owned directly by a trust will not be subject to the new charges. These changes were announced in the March 2012 UK Budget but, following lobbying, the government has allowed properties to be re-based to 6 April 2013, so that only gains from that date onwards will be caught by the charge. Non-resident companies will be liable for CGT in respect of any chargeable gain accruing for a period where the property has been liable to ARPT. Previously, companies resident outside the UK were not liable to tax on gains unless they were trading in the UK.
ISU PHOTO COMPETITION 2012 Winning entry: Aztec Maiden on the beach. Congratulations to Ulf Teske, Svitzer Salvage, who wins the US$300 prize.
Shortlisted entries 1. Asian Lily aground - Svitzer Salvage
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2. Hurricane Sandy aftermath - Donjon Marine 3. Costa Concordia - Tito Neri 4. MSC Flaminia fire-fighting - Fairmount Marine 5. Ocean Breeze – Nippon Salvage/Ultratug 6. Rena operations - Svitzer Salavge
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7. Heavy Lift - Mammoet Salvage 8. Seagate operations - Resolve Marine 9. Gelso M inspection - Svitzer Salvage
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3 6 8 7
9
6 9
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Smit operations In late December 2012, the Arctic drilling rig KULLUK was under tow from the Gulf of Alaska to Seattle when the tow connection parted in a severe storm. Despite efforts to re-establish the tow the rig eventually grounded on the coast of Sitkalidak Island, part of Kodiak Island, USA.
After mobilizing a two man inspection team to site, a detailed salvage plan was prepared in close cooperation with the owners and the local authorities under supervision of the UK SOSREP. After approval for the salvage plan was obtained, additional resources were mobilized including the 70 tonne bollard pull UNION DIAMOND - one of the AHST from the Boskalis Offshore Marine Services fleet - which was dispatched from Falmouth to assist to with the refloating. On a spring tide, and with the force of the UNION DIAMOND, the vessel was successfully refloated and delivered safely to the owners on 09 February 2013.
The severe weather conditions, the condition of the rig and the remote and sensitive location required a careful response. Environmental protection was essential and a quick refloating was needed to prevent additional damage to the specialized rig. SMIT Salvage was engaged under a Lloyd’s Open Form (LOF) contract to undertake the challenging task. Flight availability was scarce due to the holiday period and the remote location so Smit arranged for the first team of salvage experts to be mobilized by chartered plane to Alaska. Additional salvage crew consisting of engineers, naval architects and shore support followed on. After inspections, a salvage plan was submitted and approved by the local authorities and US Coastguard.
Source: SMIT Salvage
Another grounding involving SMIT was the case of the car and airwing carrier CIUDAD de CADIZ which grounded in late January off the coast at Mostyn, south of Liverpool in the UK (below).
Other major cases included in February a refloating of a bulk carrier laden with 20,000 tonnes of wheat off Tripoli. The local circumstances called for caution and SMIT refloated the vessel after having lightered part of her cargo. Further ongoing operations are the wreck removal of a capsized jack-up rig in Brazil and the removal of a grounded minesweeper in the Philippines.
The rig was successfully refloated on 06 January 2013 using SMIT’s Dyneema lines (see above right) and was brought to a sheltered location where a dive survey was conducted to assess the damage. After a thorough assessment by the salvors the rig was redelivered to its owners and SMIT continued under a different contract to prepare for onward towage to Dutch Harbour where the rig was loaded onto a heavy transport vessel on the 19th March.
International Tanker Owners Pollution Federation (ITOPF) statistics ITOPF maintains a database of oil spills from tankers, barges and combined carriers dating back to 1970 and has published its latest statistical analysis. The statistics exclude spills caused by acts of war. Spills are categorised by size
Source: SMIT Salvage
- the smallest being spills of less than 7 tonnes and the largest, spills of more than 700 tonnes. The information is gathered from published sources and tanker owners and insurers. The data relate to more than 10,000 incidents, 81% of which are in the smallest category. The figures show that of the largest 19 spills, 95% occurred in the 1970s, 80s and 90s and only 5% in the 2000s. The overall trend in large spills is clearly downward. In the 1970s there were typically more than 20 large spills each year, in the 2000s that had fallen to around three large spills each 10
year. At the same time, the quantity of oil shipped by sea in the past 30 years has risen steadily. Turning to the causes of large spills since 1970, ITOPF data shows that 29% of spills occurred through collision; 33% through grounding and 13% due to hull failure; fire and explosion accounted for 12%; equipment failure 4% and other/ unknown causes account for 9% of large spills. The statistics and other publications may be obtained from: www.itopf.com
ISU Associate Members' Day March 2013 1.
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1. L - R Iain Buchanan, Nick Sloane, Todd Busch, Michael Ellis, Hans Van Rooij
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2. L - R Phil Gregson, John Simpson, Joe Quain Salvage World is produced by the International Salvage Union. For matters relating to the publication contact: James Herbert, ISU communications advisor. Tel: +44 1423 331 096 Email: admin@gemcomms.com
3. Martijn Koppert 4. L - R Collin Barker, Eline Muller, Toby Stephens
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5. Michael Kelleher
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6. L - R Roger Evans, Sanjay Bhasin, James Ward 7. Mark Hoddinott 8. Andreas Tsavliris, John Guy 9. Jason Bennett
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